Senior Housing Finance Activity: Cushman & Wakefield, Ziegler

Cushman & Wakefield Arranges $53.4 Million in Construction Financing for LCB Senior Living Developments in Massachusetts

Cushman & Wakefield Senior Housing Capital Markets, a global real estate services firm, has arranged $53.4 million loan in construction financing and joint venture equity for LCB Senior Living’s two senior housing developments in Massachusetts.

The Residence at Vinnin Square in Swampscott, Massachusetts, will consist of 84 units for independent living, assisted living and memory care. The three-story building will be situated on a 3.1-acre site. M&T Bank provided $18.5 million for construction, while real estate investment firm AEW Capital Management and LCB provided $10 million in joint venture equity on the project, which broke ground in October and is expected to open in early 2017.

The Residence at Melrose Station in Melrose, Massachusetts, will be a 90-apartment independent living, assisted living and memory care community developed on a 1.5-acre site. M&T Bank provided $19.8 million in construction financing and the same joint venture provided $10.5 million in equity. Construction was slated to begin in November, with an early 2017 opening planned.

LCB is a senior housing owner and operator with a New England focus.

“We are thrilled to be moving forward in these terrific markets,” LCB CEO Michael Stoller said in a prepared statement. “Our partnership with Cushman & Wakefield has enabled us to be proactive and swift in taking advantage of great opportunities like these”

Ziegler Closes $50.7 Million Financing for Austin, Texas Senior Living Community, $6.4 Million Refinancing of Affordable Senior Housing Property

Specialty investment bank Ziegler has closed on $50.69 million in financing for Querencia at Barton Creek, a senior living community located in Austin, Texas, owned and operated by Senior Quality Lifestyle Corporation. The firm also closed on $6.4 million for the refinancing of Pledgerville Senior Citizens Villa, a Section 202 affordable housing property located in Pacoima, California.

The Querencia financing is a tax-exempt, fixed rate, Fitch “BBB-“ (stable) Series 2015 Bond issue. The funds will go toward refinancing the outstanding Series 2005A Bonds in the amount of $37.7 million, fund a debt service reserve fund and facilitate a restoration project and improvements to common areas.

“The Series 2015 Bonds for Querencia represents the fourth issue that Ziegler completed for SQLC’s core Texas communities in 2015,” Rich Scanlon, managing director in Ziegler’s senior living practice, said in a prepared statement. “A favorable interest rate environment allowed for refunding savings of over 7% and the ability to borrow additional funds to repair the facade of the building and begin the process of updating and expanding common areas to maintain the attractiveness of the campus and secure its reputation as the leader in the marketplace.”

Querencia is situated on a 40-acre property and consists of 157 residential independent living units, 10 residential independent living villas, 40 assisted living units, 23 memory care units and 42 skilled nursing beds.

The refinancing of Pledgerville through HUD’s 202 refinancing policy reduced the annual debt service costs by 32%, lowered the interest rate to less than 4%, refinanced $3.5 million of debt and capitalized more than $1.5 million worth of repairs.

Lancaster Pollard Facilitates Refinancing of 3 Senior Housing Communities

Specialty investment firm Lancaster Pollard has facilitated the refinancing of three senior housing communities totaling $34.7 million.

A bridge loan was refinanced with permanent, non-recourse financing via a $13.3 loan for Cedar Creek Senior Living, a 112-unit independent living, assisted living and memory care facility located in Madera, California, owned by Woodset Partners LLC and operated by Integral Senior Living. The loan, insured by the FHA Sec. 232/223(f) program, paid off a previous $11.3 million bridge loan and $900,000 in mezzanine debt and provides debt service savings. The financing will also facilitate repairs to the property.

The firm obtained $10.4 million in two loans insured by the FHA Sec. 232/223(f) program to assist Caring Places Management with the refinance of San Juan Villa, a 32-bed memory care community located in Port Townsend, Washington, and Heritage House, a 76-unit assisted living and memory care facility in Buckley, Washington. Each non-recourse loan carries 35-year terms and low interest rates. The funds will provide for annual debt service savings and go toward replacement reserves for ongoing repairs at the properties.

Lancaster Pollard also secured an $11 million loan using the HUD/FHA Sec. 232/223(f) program for Chateau Terrebonne, a 198-bed skilled nursing facility in Houma, Louisiana. The loan has a 35-year term will refinance existing debt to save approximately $150,000 in annual debt services and fund roughly $1.7 million in capital improvements.

MG3 Developer Closes on $24.7 Million Construction Loan for Senior Living Complex in Davie, Florida

North Miami Beach-based Royal Senior Care and MG3 Developer have closed on a $24.7 million construction loan for the development of a nearly 200-unit senior living complex in Davie, Florida.

Oakmonte Village of Davie will be located on 9.2 acres and will consist of ranch-style catered living, assisted living and memory care. The $32 million project will include amenity spaces with dining, theaters, a gym and spa, nursing and rehab rooms and hobby rooms.

Royal MG3 Property Owner LLC purchased the land for an undisclosed amount in 2013. The mortgage was signed by Avi Bittan, Royal Senior Care CEO and president of the LLC, and Branch Banking & Trust Co. is the lender.

Royal Senior Care has other communities in Lake Mary, Florida; Greer, South Carolina; and Tampa, Florida. 

CBRE Arranges $18.4 Million Acquisition Loan for Virginia Independent Living Community, $21.4 Million Construction Loan for Illinois Facility

CBRE National Senior Housing has arranged the sale and $18.4 million in acquisition financing for Verena at Virginia Center, a 118-unit independent living community located in Glen Allen, Virginia. CBRE Capital Markets arranged $21.4 million in construction financing and equity for the development of Greenbrier of Prospect Heights in Prospect Heights, Illinois.

The Virginia property was sold by First Centrum, a privately held development firm, and purchased through a fund sponsored by Green Courte Partners, LLC, a Chicago-based real estate private equity group.

Through its Freddie Mac Seller Service direct lending program, CBRE secured an $18.4 million fixed-rate loan, which includes a 10-year term with five years of interest only. Green Courte Partners will retain an affiliate of Senior Lifestyle Corporation, an owner and operator of more than 200 communities, to manage the community.

Greenbrier of Prospect Heights is a joint venture between developer Greenbrier Senior Living, operator Pathway Senior Living and institutional equity provider Och-Ziff Real Estate. The facility will consist of 69 assisted living units and 32 memory care units situated on a 5-acre parcel of land.

CBRE secured a $21.41 million, five-year floating rate construction loan with 39 months of interest only for the project. The loan was placed through a regional bank.

Love Funding Secures $11.3 Million Bridge Loan for Senior Living Community in Carbondale, Illinois

Love Funding, a provider of FHA multifamily, affordable and health care financing, has closed an $11.3 million bridge loan to facilitate the transition from construction to permanent financing for a new assisted living and memory care community under development in Carbondale, Illinois.

The financing relies on Love Funding’s new bridge platform, which was introduced earlier this year to provide interim funding support for acquisition and refinancing applications on U.S. Department of Housing and Urban Development loans. The program will allow the borrowers to to transition from a construction loan provided by Midland States Bank to long-term financing three years after the facility is completed. Love Funding will secure the permanent loan through HUD’s 232/223(f) loan program.

Upon completion, Landings of Carbondale will consist of 92 units on a 6.5-acre plot of land on the northeast side of Carbondale. The facility will be owned by The Landings of Carbondale, LLC, is being developed by Fricke Management and operated by Revere Healthcare.

NES Financial Provides EB-5 Financing for Community in Sebastian, Florida

NES Financial has been selected by Watercrest Senior Living Group to provide EB-5 financing for the company’s project, Pelican Landing Assisted Living and Memory Care, an 89-unit community located in Sebastian, Florida.

The EB-5 visa program encourages investment in projects that stimulate U.S. job growth while providing an opportunity for foreign nationals to become lawful permanent residents. NES Financial provides technology-enabled services for the administration of highly specialized financial transactions such as EB-5.

“NES Financial was the obvious choice when it came to finding a third party for our EB-5 fund administration needs,” Joan Williams, Principal and CFO of Watercrest Senior Living Group, said in a prepared statement. “Their unique portal with 24/7 access allows investors to track their funds at any point, and daily reporting allows us to always know everything that is going on in the project at all times.”

http://seniorhousingnews.com/2015/11/23/senior-housing-finance-activity-cushman-wakefield-ziegler/

Mentions

• NES Financial
• Cushman & Wakefield, Inc.

States

• New York